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tv   Bloomberg Bottom Line  Bloomberg  December 19, 2014 2:00pm-3:01pm EST

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last two years making sure we seize it. my presidency is entering the fourth quarter. interesting stuff happens in the fourth quarter. i'm looking forward to it. and i'm looking forward to it. the fourthinto quarter, you usually get a timeout and i am looking forward to a quiet timeout, christmas with my family, so i want to wish everybody merry christmas, happy hanukkah, happy new year. i hope you get time to spend with your family. one thing we share is we are a way to much from them. now josh has given me these who has been naughty and who has been nice list -- [laughter] and i'm going to use it to take some questions. we are going to start with greg from politico. >> thank you, mr. president.
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starting with, north korea would be the biggest topic today. sony make the right decision and pulling the movie, or does that set up a dangerous precedent in the situation? >> let me address the second question first. sony is a corporation. damageered significant area there were threats against employees. i am sympathetic to the concerns that they faced. having said all that, yes, i think they made a mistake. in this interconnected digital world, there are going to be opportunities for hackers to engage in cyber assaults, both
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in the private sector and the public sector. our first order of business is making sure we do everything to prevent those kinds of attacks from taking place. when i came into office, i up a cyber security interagency team to do everything we could do at the government level to prevent these kinds of thefts. we have been coordinating from the private sector. more needs to be done. we are not close to where we need to be. there are a lot of things in the new year i hope congress is prepared to work with us on -- stronger cyber security laws that allow for information across private sector platforms as well as the public sector, so we are incorporating and preventing these attacks from happening in the first place.
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but even as we get better, the hackers are going to get better, too. be stategoing to actors. some will be nonstate actors. all will be sophisticated. many will create damage. we cannot have a society where some dictator someplace can start imposing censorship here in the united states. somebody is able to ofimidate folks out releasing a satirical movie, imagine what they start doing once they see a documentary they don't like or news reports they don't like. worse, imagine if producers and distributors and others start engaging in dof-censorship, because they
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not want to offend the somebody who of sensibilities probably need to be offended. who we are.not that is not what america is about. again, i am sympathetic that sony is a private company, was worried about liabilities, hadied about -- i wish they spoken to me first. i would have told them do not get into a pattern in which you are timid aided -- intimidated by these kinds of criminal attacks. imagine in stead of it being a cyber threat, someone had broken into their offices and does droid -- destroyed a bunch of disks.rs and stolen
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is that what it takes for you to pull the plug on something? we will engage with, not just the film industry, but the news industry, the private sector around these issues. we already have. we will continue to do so. tohink all of us have anticipate occasionally there are going to be breaches like this. they will be costly. they will be serious. we take them with the utmost seriousness, but we can't start changing our patterns of anymore than we stop going to a football game because there might be the possibility of a terrorist attack. anymore than boston did not run its marathon this year because of the possibility somebody might try to cause harm.
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so, let's not get into that way of doing business. >> thank you for those responses. [indiscernible] are you taking some kind of symbolic step like watching the movie yourself? >> i have a long list of movies i'm going to be watching. [laughter] i never release my full movie list. the's talk about specifics of what we now know. the fbi announced today and we can confirm north korea engaged in this attack. it says something interesting about north korea that they have the state now and all out assault on a movie studio because of a satirical movie starring seth rogen -- [laughter] i love seth.
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and i love james. but the notion that that was a threat to them? it gives you a sense of the kind of regime we are talking about here. they caused a lot of damage. and we will respond. we will respond proportionally, and we will respond in a place and time and manner that we choose. it is not something i will announce here today at the press conference. more broadly, this points to the need for us to work with the international community to start setting up some very clear rules of the road in terms of how the internet and cyber operates. right now, it is sort of wild west. part of the problem is you have good states that can engage in these kinds of attacks, you have nonstate actors that can do
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enormous damage. that is part of what makes this cyber security so urgent. again, this is part of why it will be so important for congress to work with us and get a bill passed that allows for the kind of information sharing we need. don't put in place the kind of architecture that prevents these attacks from taking place, this is not just affecting who it is specifically affecting, it will be affecting our entire economy. way, i hear you are moving to europe. where are you going to be? >> brussels. >> brussels. excellent. congratulations. >> it is a long road. >> there is no doubt what a reporter from
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politico. [laughter] the waffles are delicious. [laughter] [indiscernible] you have been naughty. go ahead. >> thank you, mr. president. looking ahead to congress next you mentioned as an area of possible compromise tax reform. seewondering do you republican -- a republican congress as a better opportunity of actually getting tax reform next year? are you willing to consider both individual and corporate sides and areax legislation, you concerned about corporate conversion? >> i think in all democratic congress would have provided an
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even better opportunity for tax reform. but i think, talking to speaker boehner and leader mcconnell, that they are serious about wanting to get some things done. tax reform is one area where we can get things done. i think the coming weeks leading up to the state of the union, there will be conversations of the staff levels about what principles each side are looking at. i can tell you broadly what i would like to see. i would like to see more simplicity in the system. i would like to see more fairness in the system with respect -- more fairness in the system. with respect to the corporate tax reform issue, we know that that are companies paying 35% higher than just about any company on earth, 35%. and then there are companies paying zero, because they have better accountants. that is not fair.
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we have companies parking outside the country because of tax avoidance. we think it is important that everybody pay something if in fact they are effectively headquartered in the united states. inversion, corporate those are situations where companies really are headquartered here, but on paper switch their headquarters to see if they can avoid paying their fair share of taxes. i think that needs to be fixed. fairness, everybody paying their fair share, everybody taking responsibility, i think is going to be very important. some of those principles i have heard republicans say they share . the devil ist -- in the details. and i will be interested in seeing what they want to move forward. i am going to make sure that we put forward some pretty specific proposals, building on what we .ave already put forward
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one other element of this that i think is important is -- and i have been on this hobbyhorse now we have a lot-- of infrastructure we got to improve in this country where going to be competitive. systems,lectrical water systems, sewage systems. we are way behind. early on we indicated there is a way of us potentially doing corporate tax reform, lowering rates, a limiting loophole so everybody is paying their fair share and during that transition also providing a mechanism where we can get some infrastructure built. i would like to see us work on that issue as well. historically, obviously, infrastructure is not a democratic or republican issue,
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and i would like to see us return to that tradition. julie bates. >> i would like to ask about cuba. what do you think dissidents inside cube of fear about the policy changes you announced this week? looking atstration sanctions on me at mark, you looked at evidence of reform. why not the same for cuba? [indiscernible] we have no indication that north korea was working with another country. , we arepect to cuba glad out the -- we are glad the cuban government has released over 50 dissidents, that they are going to be allowing the community of the outsides and
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organizations monitor more closely what is taking place. i share the concerns of dissidents there and human that this issts, still a regime that represses its people. made the said what i announcement, i don't anticipate overnight changes. but what i know, deep in my if you have done the same thing for 50 years and nothing has changed, you should try something different if you want a different outcome. and this gives us an opportunity for a different outcome, because suddenly cuba is open to the world in ways it has not been before. it is open to americans traveling in ways it hasn't been before. it is open to church groups , you know, their fellow
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believers inside cuba, in ways they haven't been before. it offers the prospect of telecommunications and the internet being more widely available in cuba in ways it hasn't been before. and over time, that shook the chips away at this hermetically sealed society and i believe offers the best tospect of them leaving greater freedom, greater self-determination on the part of the cuban people. i think it will happen in fits and starts. but through engagement we have a better chance of bringing about change them we have otherwise. >> [indiscernible] think it will be unrealistic for me to map out
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exactly what cuba will be, but change is going to come to cuba. it has to. they have an economy that doesn't work. they have been reliant for years , first on subsidies from the soviet union, and then on subsidies from venezuela. those can't be sustained. and the more the cuban people see what is possible, the more interested they are in their being change. but how societies change it is country specific, it is culturally specific. it could happen fast. it could happen slower than i would like. but it is going to happen and this change in policy is going to advance it. >> [indiscernible] >> do i have to write all of these down? [laughter] >> i wanted to see if you had any assurances from the cuban
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government that it would not revert -- [indiscernible] in the past when past presidents have made similar overtures to the government? >> [indiscernible] the clinton administration made overtures, they shot down the plane, they have a pattern of being provocative activity anytime the u.s. has reached out a hand to them. >> ok. >> what is your knowledge of fidel castro? castro? him?ou ask about how is he doing? given the deep opposition of some republicans in congress he an embassy, are
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you going to get into conversations with them about efforts they want to do to block money on a new embassy? go.ll right, there we this is when to take up a lot of time. ok, with respect to sabotage -- , history being, the plane being shot down, it is not clear that was the cuban purposely trying to undermine overtures by the clinton administration. it was a tragic circumstance that ended up collapsing talks that had begun to take place. i have not seen an historical record that suggests they shot the plane down specifically noted to undermine overtures by the clinton government. it is not precedented for the president of the united states
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and the president of cuba to make an announcement at the same time that they are moving ,owards normalizing relations so there has not been anything like this in the past. over then't mean that next two years we can't anticipate them taking certain actions that we may end up finding deeply troubling, either inside of cuba, or with respect to their foreign-policy, and that could put significant strains on the relationship, but that is true of a lot of countries out there where we have an embassy. and the whole point of itmalizing relations is that gives us a greater opportunity to have influence with that than not.t then not --
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surprised if the triesgovernment purposely to undermine what is now effectively its own policy. i would not be surprised if they at anyt -- if they take given time actions we think are a problem, and we will be in a position to respond to whatever actions they take the same way we do with a whole range of countries around the world when they do things we think are wrong. is, we will be in a better position, i think, to actually have some influence, and there may be carrots as well as sticks we can then apply. namel's way that came up -- i think i mentioned this in the david mure article article, interview
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i did -- i gave a rather lengthy statement about looking forward to the relationship between our two countries, but we would continue to press on issues of democracy and human rights, which we think are important. my opening remarks probably took 15 minutes, which is a pretty long time. at the end of that, he said, mr. president, you're still a young man. -- at the end of my remarks, i apologized for taking such a long time and i wanted to make sure that before we engaged that he wasrsation very clear about where i stood. he said, do not worry about it, mr. president. you are still a young man and you still have the chance to record.del's he once spoke seven hours straight. [laughter] proceededdent castro
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to get some preliminary remarks that lasted at least twice as long as mine, and then i was able to say, obviously it runs in the family. but that was the only discussion of fidel castro we had. i sort of forgot all the other questions. [laughter] .> i have a few more i personally are you going to get involved -- >> in respect to congress, we cannot unilaterally bring down the embargo. that is codified. what i do think is going to happen, there is going to be a digests here congress it. supportersipartisan of the new approach. there are bipartisan detractors of the new approach. people will see how the -- how the actions we take unfold.
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i think there will be a healthy debate in congress. i will certainly weigh in. we will goimately ahead and pull down the embargo, which i think has been self-defeating in advancing the aims we are interested in, but i do not anticipate that happens right away. i think people are going to want to see how does this move forward before there is any serious debate about it and whether or not we would make major shifts in the embargo. all right. [indiscernible] there you are. ask under what conditions you would meet with president castro? what preconditions would you want to see? i know you said you would not announce your response, but could you say whether you're considering additional economic sanctions on north korea?
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[indiscernible] >> i think i am going to leave it where i left it, which is we just confirmed it was north korea. we have been working up a range of options. they will be presented to me. i will make the decision on those, based on what i believe is proportional and appropriate to the nature of this crime. cuba, we are not at a stage here where me presidentuba or castro coming to the united states is in the cards. how thisnow relationship will develop over the next several years. i'm a fairly young man, so i imagine at some point in my life i will have the opportunity to and enjoy interacting
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with the cuban people, but there is nothing specific we are trying to target with some sort of visit on my part. -- ok, nelson. thank you, mr. president. you spoke about 2014 being a breakthrough year. immigration, climate change. you did not make much progress around your legislative agenda. [indiscernible] republican lawmakers look at less cooperation with you as you pursue executive actions. are you going to continue to pursue executive actions that roadblocks to your legislative agenda, or is it not possible to break the fever in washington in the partisan gridlock? >> i think there are real opportunities to get something done congress. as i said before, i take speaker boehner and leader mitch
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mcconnell at their word that they want to get things done. a think the american people would like us to see get things done. the question will be, are we able to separate out those areas where we disagree in those areas where we agree? i think there are going to be some tough fights on the areas where we disagree. if republicans seek to take health care away from people who will getit, they resistance from me. if they try to water down consumer protections we put in place in the aftermath of the financial crisis, i will say no, and i am confident i will be able to uphold vetoes of those types of provisions. but on increasing american exports, on simplifying our tax system, on rebuilding our infrastructure, my hope is we can get some things done.
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i have never been persuaded by this argument that -- i think if it were not for the executive actions, they would have been more productive. there is no evidence of that. i will continue to do what i am doing, which is where i see a big problem and the opportunity to help the american people and it is within my lawful authority to provide that help, i'm going to do it. side-by-side reach out to members of congress, reach out to republicans and say, let's work together. i would rather do it with you. immigration is a classic example. when thelly happy senate passed a bipartisan --prehensive imaging should immigration bill. i did everything i could for a year and a half to provide republicans the space to act. greatowed not only
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patience, but flexibility saying to them, look, if there are specific changes you would like to see, we are willing to compromise the rig we are willing to be patient. we are willing to work with you. ultimately, it was not forthcoming. so, the question is going to be, i think -- if executive actions on areas like minimum wage or equal pay or having a more areible immigration system important to republicans, if they care about those issues, and those executive actions are bothering them, there is a very easy solution. passed bills. and work with me. because both sides are going to compromise. on most issues in order for ,heir initiatives to become law i am going to have to sign off. that means they will have to take into account the issues
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that i care about, just as i am going to have to take into account the issues that they care about. all right. i think this is going to be our last question. julie -- there you go. >> thank you very much. one of the first bills that would put before you is the bill authorizing the keystone xl pipeline. [indiscernible] i wonder if you could tell us what you would do? [indiscernible] see -- givenld you the precipitous drop in oil whetherdoes that change it makes sense to go ahead with the project? i have not think minimized the benefits. i think i have described the benefits. at issue in houston own is not
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american oil -- in keystone is not american oil. it is canadian oil that is brought out of tar sands in canada. that oil currently is being shipped out through rail or trucks, and it would save canadian oil companies and the canadian oil industry and a norma's amount of money if they could simply pipe it all the way through the united states down to the gulf. once that oil gets to the gulf, it is then entering into the world market and it would be sold all around the world. -- i will sayo no. -- i will not say no.
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there is very little impact, nominal impact on u.s. gas prices, what the average american consumer cares about, by having this pipeline. sometimes the way this gets sold it ist's get this oil and going to come here and the implication is that is going to lower gas prices here in the united states, but it is not. it is a global oil market. it is very good for canadian oil theanies and it is good for canadian oil industry, but it is benefitg to be a huge to u.s. consumers. it is not even going to be a nominal benefit to u.s. consumers. now the construction of the pipeline itself will create probably a couple thousand jobs. those are temporary jobs until construction actually happens. there is probably some additional jobs that may be created in the refining process
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down in the gulf. those aren't completely insignificant. it is just like any other project. but when you consider what we we were doing, if rebuilding our roads and bridges around the country, something ,hat congress could authorize we could probably create hundreds of thousands of jobs by million jobs -- or a million jobs. if that is the argument, there are a lot more direct ways to american infrastructure jobs. then with respect to the cost, i want to make sure that if in forwards project goes it is not adding to the problem of climate change, which i think is very serious and does impose serious costs on the american people, some of them long-term,
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but costs nonetheless. if we have more flooding, more wildfires, more drought, there are direct economic impact. and as we are now rebuilding after sandy, for example, we are having to consider how do we increase preparedness on how we , you know, infrastructure and housing and so forth along the jersey show. that is an example and you can put a dollar figure on it. you have a nebraska judge who is still determining whether or not a new cap for this pipeline is appropriate. then the is resolved, state department will have all of the information it needs to make its decision. but i will just try to give this perspective, because i think tore has been this tendency
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really hike this thing as some this thingla -- hype is some magic formula for the u.s. economy and it is hard to see him paper where they are getting that information from. in terms of oil prices and how it impacts the decision, i think it won't have a significant impact. except perhaps in the minds of folks, when gas prices are lower, maybe they are less susceptible to the argument that it is the answer to lowering gas prices, but it never was going to lower gas prices, because the oil being quite through the keystone pipeline is going to the world market. >> [indiscernible] >> i will see what they do.
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we will take that up in the new year. >> any new year's resolutions? >> april. go ahead. >> thank you, mr. president. last question, i guess. [laughter] ago this month, i us to, what was the state of black america. you said it was the best of times in the worst of time. it was the best times in the sense that there was never more opportunity for black americans and the worst of time because of unemployment and the like of opportunities. [indiscernible] as we talk about those issues as well as race relations around america. rest of america, black america in the aggregate is better off than it was.
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haveis improved, people gotten health insurance, has beenquity recovered. a lot of those folks are african-american. income andween wealth of white and black america persists, and we have got more work to do on that front. i have been consistent in saying legacyou know, this is a of a troubled racial past. .im crow and slavery that's not an excuse for black i think the overall majority of black people understand that is not an excuse. they are working hard. they are out there hustling in trying to get an education, but they are starting behind oftentimes in the race. what is true for all america is
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we should be willing to provide people a hand up -- not a handout. but help folks get that good early childhood education, help them graduate from high school, help them afford college. if they do, they will succeed and that will be good for all of us. seen some progress. the education reforms we have initiated are showing measurable results. we have the highest high school graduation we have seen in a very long time. we are seeing record numbers of young people attending college. many states that have initiated reforms, you are seeing progress in these scores for african-american and latino students, as well as the broader population, but we still have more work to do. how we are thinking about race relations right now
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has been colored by ferguson, the garner case in new york, a growing awareness in the broader population of what many communities of color have understood for some time, and that is there are specific instances at least where -- enforcement doesn't feel as if it is being applied in a colorblind fashion. formed isorce i supposed to report back to me in 90 days, not with a bunch of about racesings relations, but some really concrete practical things that and lawepartments enforcement agencies can begin implementing right now to rebuild trust between communities of color and the
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police department. and my intention is, as soon as i get those recommendations, to start implementing. i caning -- some things do three executive actions. some will require congressional actions. some will require actions taken by local jurisdictions. but i actually think it has been a healthy conversation we have had. these are not new phenomena. the fact that they are now servicing, in part because people are able to film what in the past had been stories passed around the kitchen table allows people to make their own assessments and evaluations. you are not going to stop a problem if it is not being talked about. in the meantime, we have been moving forward on criminal justice reform issues more broadly. one of the things i did talk about in my opening statement is the fact that last year was the first time in 40 years were we
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have the federal prison population go down and the crime rate go down at the same time, which indicates the degree to which it is possible for us to who we areer about incarcerating, how long they are incarcerated, how we're dealing with nonviolent offenders, how we are doing -- dealing with .rug offenders, drug courts we can do a better job and save money in the process with these reforms and i have been pleased to see we have republicans and democrats in congress who are interested in these issues as well. the one thing i will say -- and this is going to be the last thing i say -- [laughter] i -- one of the great things about this job is you get to know the american people.
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you meet folks from every walk of life, every region, every faith. what i don't think is always captured in our political debate since the vast majority of people are just trying to do the right thing. and people are basically good .nd have good intentions sometimes our institutions and our systems do not work as well as they should. sometimes, you know, you got a police department that has gotten into bad habits over time and has not -- has maybe surfaced some hidden biases that we all carry around. you offer practical solutions, people want to fix these problems. it is not a situation where people feel good seeing somebody dying.and
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i think that troubles everybody. so, there is an opportunity for all of us to come together and, you know, to take a practical approach to these problems. and i guess that is my general theme for the end of the year, which is we have gone through difficult times. it is your job, press corps, to all the mistakes that were made and all the bad things that have happened and crises that look like they are popping, and i understand that. but through persistent effort and faith in the american people, things get better. the economy has gotten better. cleanility to generate energy has gotten better. we know more about how to
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educate our kids. we solve problems. crisis. a real the firstmistake in case because it is not something that has been seen before. we fix it. you have unaccompanied children spike at the border. and that may not get fixed in the timeframe of the news cycle, but it gets fixed. and you know, part of what i , as we reflect on the new year, is it should generate some confidence. america knows how to solve problems. and when we work together, we can't be stopped. and now i'm going to go on vacation. mahalo. thank you, everybody.
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>> the president of the united states speaking live from the press room at the white house this afternoon. you are watching a live special report on bloomberg television. i am mark crumpton in new york. let's bring in our roundtable. joining me in the studio, our white house correspondent phil mattingly. at the white house, our chief washington correspondent peter cook. and bloomberg news cyber security reporter michael wiley. gentlemen, thank you so much. the president said this was a breakthrough year for america. you have set in the second row oftentimes at the white house. do the vast majority of lawmakers consider it to be a breakthrough year? >> i don't think so. i think they would just point to the midterm elections to report to the counter to what the president was saying. what the president was doing .oday was laying out the scene
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the economy, numbers across the board look very good for the united states, especially compared to other countries. the president is trying to lay out they are moving into a new year on the back of five weeks after the election, the president and his team feel like they have made a number of positive steps forward. he was energized. he does not consider himself a lame-duck president. he even took some shots at the very end with the media where he was talking about ebola and the undocumented minors which sucked ton ofme of -- attention, really crushed some positive momentum for the white house that have all but gone away. are a lot of republicans who would disagree, but that was what he was trying to convey today. did the president extend an olive branch to the
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republican party after the first with ms the majority in both houses of congress? >> i did not hear anything new from the president, mark, in that regard. he talked about the opportunity to work together -- trade, tax reform, infrastructure. these are all areas he has mentioned in the past. there has been gridlock on those issues in the past. he said maybe there will be new ideas on tax reform. regard tom say in executive action, he will continue to move in areas where he can move and when congress is not willing to move with them. i did not get too much of an olive branch. more of a week and the. a long shot at best. michael riley's standing by in washington. the president did talk about north korea and that hacking scandal, the president saying sony is a corporation that suffered significant damage. there were threats against its employees.
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he continued, having said all of a mistake, ide believe. that sony should have spoken to him first. that hes interesting talked about sony making mistake when they were through the film from distribution for the holiday season. i think he really wanted to talk about this as an issue about more than just sony's data and all of the salacious e-mails that came out of it. he wanted to talk about a much bigger set of issues which was aroundation by a country things like freedom of expression and freedom of speech. i mean, the big question now is what are they going to do about it? and i think he wanted to frame this is a much later issue that called for a stronger response. joining me on the phone from washington with his reaction, at a globalnalyst
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research and political consulting firm. thank you for your time today. to you aboutk cuba. the president said, i share the concerns of dissidents and human rights activists there, but if you try something for 50 years and nothing is changed, you have got to try something different. however some republicans on capitol hill do not see it as such. how does the relationship layout going forward? >> i do not think there will be any effort from the republican-controlled congress next year to repeal the embargo, to work with the president anyway. frankly i do not think the gop leaders even have this is a top priority and therefore are certainly not going to get in front of the rank-and-file members who do think this is very important. i do not think from a capitol hill perspective there will be the effort. indeed you have heard people like senator marco rubio talking about potential he preventing funding for the establishment of
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.he embassy in terms of the wider u.s.-cuban relationship, this is the beginning of a new era, certainly. but there is a long way to go in terms of commercial opportunities. a lot needs to happen before u.s. companies invest in a significant way or have access to the cuban market. >> you said you do not believe this is a top priority for the gop. why not? >> i think a generation ago, the top priority for republicans. i do not think it has the same resonance it once did. certainly cuba is not a threat to the u.s. in any way as perhaps it once was. when you have the strong backing of the soviet union. poor island nation off the coast of florida. i do not think many in america think about cuba at all, really. >> think so much.
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phil mattingly, you and i were talking during the press conference. the president only took questions from females? there are traditions and there is procedure on how these press conferences work. the ap always gets the first question and the networks, particularly the end of the year always get their questions as well. i think it was really interesting on the network side. i think there was some possibility that the networks his lasttaking live primetime speech. maybe a little shot they're going on. also i think the white house is very causes and of the fact that the front row is often dominated and i thinke men, that there was a not-so-subtle indicator today by the president taking questions from eight women that they recognize this is the case and they will go around that. the white house decided to take their own tack today. cook, let me ask you -- the president also talked about executive authority.
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he is getting pushback from republican members of congress, particularly where it relates to immigration. the president said he would use his legal authority to act where he can to help the american people, but he would rather work with congress. two people in congress share that sentiment, wanting to work with the president on issues of concern of -- to the american people? >> is certainly depends on which member of congress you are talking about. these are difficult issues to get past in any congress, market, and when you have republicans on the hill, a lame-duck president, tw's to go, for them to be working together -- two years to go, for them to be working together, it is going to be a challenge. and they do see the executive actions is a slap in the face. the president may say it would not change their behavior, but they do see it as an action he did not need to take and it has
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poisoned the well, in the words , inohn boehner and others terms of cooperation in january. is president says he optimistic but their are real questions about what they can get accomplished. the lastuestion -- question the president took was about the state of black america. he said, it is better in the aggregate them when i came into office. wealthsay the gap in between white and black america persists. he says that it is not an excuse for black folk, but he also said "they have started behind a lot of times in the race. get early help them childhood education, graduate high school, and afford college." the president and his family headed to hawaii tonight for his vacation. they with us. another check of the markets on
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the other side of the break. " on bloomberg television continues in just a moment. ♪
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>> get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet on bloomberg.com. that does it for "bottom line." on the markets is next. have a great weekend. i will see you monday. >> let's show you how these
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stocks are moving today. we are on the markets. let's get you caught up. you can see the s&p up 7/10 of 1%. we are at the highs of the day. the markets continued to rise. they really did shoot upwards. let's look at the picture for oil. that is important, too. oil rebounding from a five-year low. it's as after saudi arabia's oil minister says that -- ok, that may mean higher prices. joining me with a sector report on how financial firms are benefiting from the drop in crude oil -- something that has been very important. mike regan, you join me now. we are not only talking about oil. we are talking about the broader stock market. it is interesting because we
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have seen a big sharp move while obama was speaking. big strong today rally. it is great to see this followthrough today. but really thee, s&p has been out for most of the day. this is triple witching day. >> reminds viewers what that is. options expire. it can cause unpredictable moves in the market, things you cannot explain. be on the lookout for that, also very heavy volume on days like that. >> of course, the hack attack is what everyone is talking about. obama just say that he wished sony and picked up the phone and talk to him. what is this doing for investors. >> remember, so he has two to strengthen -- distinct stocks. there are japanese shares that trade in the yen and then there
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are u.s. years that trade in dollars. you see what the yen has been doing -- >> that can explain any differences. >>, right, right. before the hacking, the japanese 50%, very muchf a function of the weakening. for both,h a 39% drop which is a decent sized drop when you consider movies are about 2% of sony's revenue. they are an $80 billion company. movies are $8 billion of that. a beasley there is a reputational damage. very hard to put a dollar figure on. a $2 we're looking at billion loss for this movie -- >> more than a quarter? >> there are other issues that could drop. >> are analysts cutting their
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rating on the stock? not seen any. the buy ratings are the highest they have been since 2008. pretty bullish. the company is facing big the hacking.sides the computer business, lap of demand for their computers, and the tv business come at you will. it there, mike. again, our stocks editor right there. we will be on the markets again an hour. stay right there for "street smart." ♪
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>> welcome to the most important hour of the session. 60 minutes left until the closing bell. on thestors are betting federal reserve. -- we will break down the markets. in emergingut debt economies and how the white house plans to respond to north korea. "street smart

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